Dive Brief:

• United Airlines officials have announced that the company will invest $30 million in Fulcrum BioEnergy, Inc., to promote biofuel use among air carriers. This is the biggest investment toward alternative fuels from a domestic airline thus far, according to United.  
• The partnership of the two firms will develop several biofuel plants close to some of the airlines’ hubs. Those sites are expected to produce up to 180 million gallons of fuel annually.
• The aviation biofuel that Fulcrum makes costs less than $1 per gallon to create, compared to $2 per gallon for typical aviation fuel, according to Fulcrum Vice President of Administration Rick Barraza.

Dive Insight:

The waste-to-energy process that Fulcrum uses takes municipal solid waste — such as plastic, paper and other household waste — and converts it into low-cost fuel that is expected to provide an 80% reduction in lifecycle carbon emissions.

United Airlines leaders view the investment as a way to protect the company from harm caused by fluctuations in oil prices. "It’s a smart move for our company as biofuels have the potential to hedge against future oil price volatility and carbon regulations," said Brett Hart, executive vice president and general counsel for United Airlines.